Surging Global Debt and Rising Interest Costs

Global debt has surpassed $100 trillion, significantly influenced by escalating interest rates affecting both governments and corporations. The OECD highlights the emerging risks associated with debt maturity and refinancing, particularly for nations reliant on foreign currency.

Notably, government debt servicing costs in wealthier nations have reached historic highs, outpacing spending on critical sectors like defense and housing. With a staggering $15.7 trillion in gross borrowing from key issuers such as the US, Japan, and the UK, the risks are poised to intensify as nearly half of government debt is set to mature by 2027. Germany's recent approval of a substantial infrastructure plan underscores the urgent need for strategic debt management, especially as rising interest rates threaten fiscal stability.

Experts caution that the interconnected crises, including the climate emergency, will continue to strain economies and necessitate thoughtful investment strategies to ensure long-term viability.